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Sunrise Construction, Inc. is a home builder in Arizona. Sunrise uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of $1,400,000 and total direct labor cost of $3,500,000. The following events occurred during August: (Click the icon to view the events.) Read the requirements. More info a. Purchased materials on abcount, $410,000 b. Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned. c. The company incurred total wages of $200,000. Use the data from Item b to assign the wages. Wages are not yet paid. d. Depreciation of construction equipment, $6,900 e. Other overhead costs incurred; Equipment rentals paid in cash, $40,000; Worker liability insurance expired, $8,000. f. Allocated overhead to jobs. g. Houses completed: 402, 404 h. House sold on account: 404 for $260,000 Requirement 1. Calculate Sunrise's predetermined overhead allocation rate for the year. Requirement 2. Prepare journal entries to record the events in the general journal. (Record debits first, then crec a. Purchased materials on account, $410,000. b. Requisitioned direct materials and used direct labor in construction. Record the materials requisitioned. c. The company incurred total wages of $200,000. Use the data from Item b to assign the wages. (Assume the wages have not beer d. Depreciation of construction equipment, $6,900 f. Allocated overhead to jobs. g. Houses completed: 402,404 Begin by recording the revenue from the sale on account. Do not record the expense related to the sale in this journal entry. We will do that in the nex Now record the cost of goods sold from the sale of house 404. Sunrise Construction, Inc. is a home builder in Arizona. Sunrise uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of $1,400,000 and total direct labor cost of $3,500,000. The following events occurred during August: (Click the icon to view the events.) Read the requirements. More info a. Purchased materials on account, $410,000 b. Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned. c. The company incurred total wages of $200,000. Use the data from Item b to assign the wages. Wages are not yet paid. d. Depreciation of construction equipment, $6,900 e. Other overhead costs incurred: Equipment rentals paid in cash, $40,000; Worker liablity insurance expired, $8,000. f. Allocated overhead to jobs. g. Houses completed: 402,404 h. House sold on account: 404 for $260,000 Requirement 1. Calculate Sunrise's predetermined overhead allocation rate for the year. Requirement 2. Prepare journal entries to record the events in the general journal. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Purchased materials on account, $410,000. b. Requisitioned direct materials and used direct labor in construction. Record the materials requisitioned. c. The company incurred total wages of $200,000. Use the data from Item b to assign the wages. (Assume the wages have not been paid.) d. Depreciation of construction equipment, $6,900 e. Other overhead costs incurred: Equipment rentals paid in cash, $40,000; Worker liability insurance expired, $8,00 (Prepare a single journal entry for this event.) f. Allocated overhead to jobs. g. Houses completed: 402,404 h. House sold on account: 404 for $260,000 Begin by recording the revenue from the sale on account. Do not record the expense related to the sale in this journal entry. We will do that in the next step. Now record the cost of goods sold from the sale of house 404

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